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ATI Sheds Tungsten Assets to Kennametal for $605M

Metals producer Allegheny Technologies (ATI) sold its tungsten assets to components maker Kennametal (KMT) on Monday for $605 million as it looks to focus on its core high-performance metals business.

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Kennametal said the tungsten deal allows it to diversify its portfolio with “vital strategic assets,” helping to expand its presence in the aerospace and energy markets.

Shares of ATI climbed close to 10% to $31.40, while those of Kennametal edged up about 2%.

A leading producer of tungsten metallurgical powders and tooling technologies, the tungsten business had roughly $340 million in annual sales last year. It is operated by roughly 1,175 employees across 14 facilities globally.

The acquisition has been approved by both companies’ boards of directors and is expected to close by the end of the year, subject to regulatory approval and other customary conditions.